U.S. bank credit is growing at the fastest pace in three years, giving the Federal Reserve confidence in the economic expansion's staying power.

Financial institutions increased commercial and industrial loans by an average annual pace of almost 10 percent in the third quarter, the highest since the comparable quarter in 2008, compared with a 1.7 percent decline in the past four years, according to Fed data. The latest numbers show loan growth of 15 percent, seasonally adjusted, in October and 6.1 percent in November.

The resumption in lending means a projected fourth-quarter pickup in gross domestic product may be sustained next year even amid Europe's sovereign-debt crisis, said Robert McTeer, former Federal Reserve Bank of Dallas president. He predicts the central bank's policy group, which has moved to push down long-term interest rates and pledged to keep its benchmark federal funds rate near zero through mid-2013, probably won't approve new monetary easing at its Dec. 13 meeting.